StockMarketWire.com - Polymetal International said it had completed a feasibility study for the Nezhda project in Russia and approved the start of its construction.

Pre-production capital expenditures was estimated at $234m, including capitalised pre-stripping costs.

The project's internal rate of return was estimated at 29% with a net present value of $302m, using a 10% discount rate and $1,200 per ounce gold price, among other assumptions.

Total cash costs for the open pit were estimated in the range of $620-670 per ounce of gold equivlent and all-in sustaining cash costs in the range of $700-750 per ounce of GE.

First production was planned for the fourth quarter 2021,with full ramp-up by the second quarter of 2022.

Mineral Resources comprised 12.4m ounces of gold equivalent with an average grade of 4.5 grams pertonne, a 1.6m increase compared with the previous estimate.




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